JPMorgan’s Fintech Fee Push: A Year-Old Battle Reshaping Financial Data Access
JPMorgan’s Fintech Fee Push: A Year-Old Battle Reshaping Financial Data Access
JPMorgan Chase, the largest U.S. bank, initiated a significant shift last year by pushing to charge fintech companies for data access, citing the massive strain these ‘middlemen’ place on its systems. Internal memos from late 2024 revealed that a staggering 87% of the 1.89 billion monthly data requests from aggregators like Plaid were not customer-initiated transactions, but rather for purposes ranging from product improvement to data harvesting.
This move, which began with negotiations in mid-2024 and aimed for new fees to commence as early as October of that year, marked a potential upheaval in the fintech ecosystem. For years, API access had been free, enabling numerous fintech startups to offer no-fee services. JPMorgan’s stance gained momentum following a May 2024 Consumer Financial Protection Bureau (CFPB) motion supporting a lawsuit against the ‘open banking’ rule, which had previously mandated free data provision. JPMorgan CEO Jamie Dimon had publicly urged banks to ‘fight back’ against such regulations, setting the stage for the ongoing re-evaluation of data sharing costs in the financial sector.
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